Chennai Housing Market Poised for 18% Sales Increase in 2025
The residential real estate market in Chennai is set to continue its steady recovery in 2025, with home sales projected to exceed 15,000 units, representing an 18% increase from 2024. This optimistic forecast is detailed in a report by the Confederation of Real Estate Developers Association of India (CREDAI).
According to Mohamed Ali, president of CREDAI Chennai, a total of 12,942 units were sold in 2024. Price movements have remained modest, which has helped reinforce Chennai’s reputation as a market driven primarily by end-users rather than speculative investors. This stability has been a key factor in maintaining buyer confidence.
Industry data reveal that approximately 26,500 housing units have been launched across nearly 250 projects up to October 2025. Full-year launches are expected to be almost 20% higher than in 2024. The report highlights that sales momentum has remained strong, particularly in the southern and western parts of the city. Infrastructure upgrades and improved transport connectivity have significantly influenced buyer preferences in these areas.
Corridors along Old Mahabalipuram Road (OMR), GST Road, Porur-Poonamallee Road, and Radial Road have emerged as key demand centers. These areas are popular due to their proximity to employment hubs and the expanding Chennai Metro Rail network. The western suburbs have seen a notable increase in residential interest following the progress on the Kuthambakkam bus terminus and the completion of Chennai Metro Rail’s Corridor 4.
Looking ahead, CREDAI anticipates that South and West Chennai will remain the primary drivers of residential growth in 2026. However, developers also see potential for redevelopment-led growth in Central and North Chennai. Greater regulatory clarity, particularly under the Tamil Nadu Apartment Ownership Act, could help unlock stalled redevelopment projects and attract more buyers to older neighborhoods.
The CREDAI report underscores the importance of continued infrastructure development and regulatory support to sustain the positive momentum in Chennai’s housing market. With these factors in place, the city is well-positioned to meet the growing demand for quality residential units.
